Stock regulator fines six rule benders

Stock regulator fines six rule benders

Star Business Report

Bangladesh Securities and Exchange Commission yesterday fined five stockbrokers and an investor Tk 28 lakh in total for breaching securities rules.
Charges against the stockbrokers include extending share credit to its directors, receiving cash higher than the permissible limit, providing excess share loans to single clients or investors and providing credit to purchase non-marginable shares.
Gateway Equity Resources will have to pay the highest amount—Tk 10 lakh, as the stockbroker provided share credit to its managing director from the company's paid-up capital and retained earnings, gave loans to purchase non-marginable shares and failed to submit audited financial reports to the commission on time.
NBL Securities will have to pay Tk 3 lakh, Transcon Securities Tk 5 lakh, Khurshid Securities Tk 3 lakh and Be Rich Tk 5 lakh, BSEC said in a statement.
The regulator also fined Niamul Kabir, an investor, Tk 2 lakh on charges of arranging trade.
Although the regulator asked Kabir to be present at a hearing at the commission with a written explanation, he was not present, which was also a violation of rules.